LOS ANGELES—The U.S. Department of Housing and Urban Development (HUD) on June 11 suspended federal funding to the Los Angeles Homeless Services Authority (LAHSA), cutting off millions of dollars to the L.A. region, over allegations of fraud and widespread mismanagement.
HUD action to suspend federal funding comes in the wake of an investigation into LAHSA, Secretary Scott Turner announced Thursday, adding that the agency has “uncovered evidence of LAHSA’s false statements and its irresponsible actions and failures,” including a lack of financial management and lack of safeguards against conflicts of interest.
The Los Angeles Continuum of Care (CoC), led by LAHSA, has received nearly $1 billion in taxpayer dollars over the last five years. Despite federal assistance, L.A. remains the epicenter of the nation’s “drug-fueled” homeless crisis, according to Turner….